§ Mr. Gouldasked the Secretary of State for Trade and Industry to what factors, and in what proportions, he attributes the £400 million loss recorded by the Export Credits Guarantee Department; and if there is any indication that the fraud of which the Export Credits Guarantee Department, with other insurers, has been the victim and which is currently being investigated by the fraud squad, played any significant part.
§ Mr. ChannonECGD's cash deficit of £392.5 million at 31 March 1985 reflects the Department's recent record claims payments, which have far outstripped premium and interest income. About 20 per cent, of these claims have arisen from private buyer default; the balance is principally due to shortages of foreign exchange in the major debtor countries. It is expected that these latter claims will be recovered in accordance with the terms of international debt rescheduling agreements. In the interim, ECGD will pay interest at commercial rates on its borrowings from the Consolidated Fund. I have seen no evidence which suggests that fraud has been a significant contributory factor.